India Cancels Cryptocurrency – It’s Really No Big Deal. Here’s Why.
Bitcoin plunged more than 10% at one point with most of the top 50 altcoins following suite (as usual) on the news India cancels cryptocurrency. Indian finance minister Arun Jaitley is quoted as saying “The Government does not consider cryptocurrencies legal tender or coin and will take all measures to eliminate use of these crypto-assets in financing illegitimate activities or as part of the payment system,”
At first glance, the news that India cancels cryptocurrency sounds like bad news. After all, Bitcoin became very popular in India after inexplicable currency controls rendered higher denominations of Indian currency worthless overnight. The government of India has some larger goal here with regards to their clamps on currency and cryptocurrency, in and of itself, is not the target here.
As India cancels cryptocurrency use within its borders the broader objective is not to ban Bitcoin or any other cryptocoin but to maintain a level of control over their currency unheard of in modern times.
Arun Jaitley has held various positions in government since the year 2000 and is known to be something of a rebel having gone against the establishment even so far as to argue for obstructing the parliament of India itself. Long known as a proponent of individual rights and freedoms, his announcement that India cancels cryptocurrency is puzzling to say the least.
So India cancels cryptocurrency. So what? As the headline above said – it’s no big deal. Although India holds prominence for a large volume of Bitcoin transactions, most of them are surprisingly small. To put this in perspective you need to consider how astonishingly low the average income of an Indian citizen is and, as a result, how little they actually spend…
India’s per capita income was $1670 ranking the country as placing 112th out of 164 countries according to The World Bank. As such, what COULD the worst possible impact be if and when Bitcoin and other cryptocoins disappear in India. Not much. Not much at all.
What we’re seeing here is the worst possible example of FUD — Fear, Uncertainty and Doubt.
Bitcoin Bear Hunting – Bulls Can Kill Bears Every Time. Smart Investors Can Too.
Bitcoin pricing has been in something of a morass hovering around $11,000 for the past tree days which is reason enough to start Bitcoin bear hunting. It was bad enough that Bitcoin values have been more-or-less frozen in a no-man’s land of value but now with the overnight news out of Japan that Coincheck, one of their largest exchanges, abruptly halted Bitcoin trading and are leaving clients high and dry as they cannot make withdrawals out of their account. Bitcoin is down 5% compared to this same time yesterday on the bad news.
The last waves of bad news out of India and South Korea got me Bitcoin bear hunting. At least those sources of bad news were the respective governments which makes FUD more understandable. With Coincheck’s surprising news there shouldn’t be anywhere near this level of FUD. That’s because Coincheck is a private company, not a government agency. Who knows why this is happening at Coincheck? When Coinbase here in the USA has an issue and stops trading any given coin (like BCH) or when a popular exchange like Kraken is offline for three solid days, coin prices don’t plunge on the news.
Bitcoin bulls need to come out of hiding and start Bitcoin bear hunting. There is no better time than now to Bitcoin or other cryptocoins so far as I’m concerned. With Bitcoin sustaining these low prices for a prolonged period of time I see us at the bottom of pricing which means there’s nowhere else to go but up.
Every Bitcoin expert that matters sees Bitcoin hitting all-time highs this year and I happen to agree. When Bitcoin wasn’t in the spotlight it climbed year over year with gains that any bank or stock exchange would be envious of. Now with Bitcoin center stage, bad news is unnecessarily exacerbating downward trends as good news is understandably overlooked. Everyone loves a good scandal, salacious events, intrigue, suspense, etc. These things appeal to aspects of mankind’s darker side. Yet the brighter side is the way to go; Bitcoin will get past this turbulence and I fully expect 2018 to be Bitcoin’s best year ever. Who’s’ with me in going Bitcoin bear hunting? Let the next run of the bulls begin!
First Bitcoin Futures Contract Expires as Bitcoin Rises
Is it a coincidence or a convergence of market forces that the first Bitcoin futures contract as Bitcoin rises? It’s difficult to be sure as Bitcoin historically dips in January only to bounce back higher than ever. What complicates this review of Bitcoin history is the factor Bitcoin futures may play. If you step back and consider all of the dynamics in play, it might not be a coincidence that the first Bitcoin futures contract expires as Bitcoin rises – on the same day.
Consider these points:
Back in November 2017 the news of Bitcoin futures markets on the CME and CBOE breaks. Right after that, hedge fund managers and affluent investors start buying up Bitcoin which drives it near it’s all time of high of $20,000 knowing full well they would be shorting Bitcoin on the futures market.
Then we have the the first Bitcoin futures contract coming in at around $15,000. Bitcoin whales then start pumping up the price of Bitcon to all time high and making truckloads of money in the process and then start selling BTC and taking their profits which leads to a panic run with BTC selloffs coming in from every direction. The hedge fund managers and other players are very happy to see this because they had already shorted Bitcoin on their futures contracts COUNTING ON THE FACT the price of Bitcoin would plunge. Which it did.
A lot of people would rightfully call “bullshit” on such market manipulations but at the same time it can’t be denied it’s brilliant. Plays like this happen on the stock market all the time. I’ve personally known investors sitting on huge blocks of stocks they own in any given company SHORTING the sale of that same stock BETTING it will go down. Sounds crazy, right? But it isn’t if you run the numbers. They’re covering their bets both ways.
BUT WAIT THERE’S MORE…
After the dramatic plunge of Bitcoin price the past 48 hours every investor worth his salt knows there is an amazing buying opportunity on Bitcoin and other coins at bargain basement prices. So investors big and small — whales and minnows alike — go on a cryptocoin buying frenzy leading to prices driving up across the board. Our founder and editor-in-chief Howard Sherman documented this earlier today.
While it is seldom clear WHY Bitcoin pricing and other cryptocoin values for that matter can move so dramatically so quickly I think we have a viable theory here that it’s no small coincidence that the first Bitcoin futures contract expires as Bitcoin rises.
Here’s an alternative theory to explain the historical price dips and highs in January; Wall Street executives always get their bonuses in mid January. Is the sudden price spike the result of Wall Street players buying Bitcoin now that they have received their bonuses? Is it the new Bitcoin futures markets? A mix of both and perhaps other forces at work as well? Nobody can be sure.
What is certain more than ever is that Bitcoin has become, in every sense, the new gold.
Bitcoin Rebounds Altcoins Follow – Bitcoin and Many Other Cryptocoins On The Rise
What better news could anyone wake up to than to see that Bitcoin rebounds altcoins follow in the wake. This is a common pattern which clearly establishes Bitcoin – yet again – as the king of cryptocoin. In as much as Bitcoin rose some 25% off its low yesterday I was astonished my portfolio of altcoins (LEND, DGB and DRGN) was up some 50%! “I love the smell of good news in the morning.”
When Bitcoin rebound altcoins follow should be an established fact for any cryptocoin investor, even the novices. Look at almost any chart and overlay the digital currency of your choice alongside Bitcoin and you will see an unmistakable pattern; Bitcoin always leads the way. Fellow staff writer Nat Roth, a veteran of various financial markets, agrees with me. Look at a pairing chart of Ripple’s XRP and BTC and you’ll see this to be true yet again…
So when we say when Bitcoin rebounds altcoins follow along we speak from experience with the facts to back it up. Cryptocoin investors, in my opinion, should always keep some BTC in their portfolio as a barometer measuring the overall cryptocoin market. Whenever you see a Bitcoin price swing – in either direction – you’ll have advanced warning of what’s to come next in any given coin,
The takeaway from the events of the past twelve hours is to HODL. Anyone who sold off yesterday is probably kicking themselves today. Investing in digital currencies is never for the faint of heart but you can always be sure of one canary in the coal mine; Bitcoin. With every cryptocoin investing decision you make – whether to buy or to sell – never forget that when Bitcoin rebounds altcoins follow. From everything I’ve seen it may as well be as much a natural law as the law of gravity.
Bright Bitcoin Christmas Through Price Boost – Say Goodbye to The Grinch.
Despite the Grinches glomming on to Bitcoin’s recent price fluctuations, history has proven the world had a bright Bitcoin Christmas through price boost. It’s becoming something of a laugh when a media outlet publishes another article of doom and gloom on Bitcoin’s lower price (only at times) then are suddenly silent at times when Bitcoin makes another blast.
Just 24 hours ago Bloomberg reported a Bitcoin selloff yet where is the coverage of the Bitcoin price blossoming past 16,000 today? The Bloomberg article had the unmistakable tone of doubt in Bitcoin. And the next morning we have Bitcoin on the fast track back to its previous high set just a few days ago. Since this same time yesterday Bitcoin grew by 15% and nearly $2,000. The march upward began last night which led to a bright Bitcoin Christmas through price boost.
I’m going to make a New Year’s resolution to stop reporting on Bitcoin pricing on a seemingly daily basis because it strikes me as becoming tedious and at times even redundant. If you look past the skeptics and cynics, the more balanced among the Bitcoin commentators see Bitcoin exploding in 2018. And it seems this new pricing trend is getting an early start at the end of 2017.
The Bitcoin pricing trend dating back to back five or six years is only on an upward trend. The best that could be said about the critics is that they fear a change to the status quo that Bitcoin and altcoins represent. The “powers that be” need to accept this new reality that their hallowed institutions are being shaken to their core as only the tech sector can deliver.
Bright Bitcoin Christmas Through Price Boost is this year’s headline as we ring in 2018. I can scarcely imagine what heady headlines the Crypto Caper contributors will be crafting next year. “Bitcoin Breaks $100,000” anyone?
Bitcoin Pricing is a Ping Pong Ball – The Charts Give the Proof
On December 16th Bitcoin broke through the $19,000 mark and was hovering just under $20,000. We were holding off on an article as we naturally assumed Bitcoin hit $20,000 at which point we would’ve published new Bitcoin news. It’s been getting a little tiresome publishing almost daily Bitcoin pricing articles. Imagine our surprise to lean that Bitcoin pricing is a ping pong ball. It bounced up and down and around $20,000 all the next day.
Then more proof that Bitcoin pricing is a ping pong ball the next two days — BTC bounced up and down between the 18s and 19s over the weekend. This morning we saw Bitcoin at $19,100 then bopping up and down to a current price of $18,600 as I write this article.
I find these price fluctuations surprising as CME Bitcoin Futures hit the markets yesterday and TD Ameritrade’s own Bitcoin futures trading launched today. If anything, all of these positive adoptions of Bitcoin to the broader markets should have boosted Bitcoin well past $20,000 and beyond at this point. My thinking is echoed by Thomas Peterffy who appeared on CNBC this morning.
Bitcoin Pricing is a Ping Pong Ball should be a thing of the past at this point considering that more merchants than ever accept Bitcoin for payment both in brick-and-mortar stores as well as online sellers. On top of that, Bitcoin ATM machines are rolling out across North America and Europe at a rapid pace. All of this points to Bitcoin’s rightful place in the global economy as one among accepted currencies. Within five years I foresee cryptocurrency having little if any distinction over fiat money. The future of money is unfolding at this moment and Bitcoin is paving the way. It’s safe to say that the ping pong ball of cryptocoin should stop bouncing up and down and going back and forth. Fortunately, Bitcoin price fluctuations are much less dramatic compared to the last time I wrote about this.